BB directs banks to ensure same-day credit of inward remittances
In cases where post-credit review is not feasible, banks must conduct pre-credit verification and settle the transactions within three business days
The Bangladesh Bank has instructed banks to credit inward remittances to beneficiaries' accounts on the same day or by the next business day, aiming to reduce delays and improve efficiency in cross-border payment processing.
The directive was issued through a circular today (8 January) and has taken immediate effect. However, banks have been given a transition period until 31 March 2026 to fully comply with the new requirements.
Under the revised guidelines, authorised dealer banks must promptly notify customers through secure electronic channels once inward remittance messages are received.
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Remittances received during banking hours are to be credited on the same business day, while those received after banking hours must be credited on the following business day.
To speed up processing, the Bangladesh Bank has advised banks to use straight-through processing (STP) systems or risk-based expedited processing methods.
Where essential information is available, banks may credit beneficiary accounts even if some documentation or compliance checks are still pending, provided those requirements are completed afterwards.
In cases where post-credit review is not feasible, banks have been instructed to complete pre-credit verification and settle the transactions within three business days.
To further accelerate processing, the central bank has instructed banks to reduce dependence on end-of-day nostro account statements and instead rely on intraday credit confirmations.
Banks have also been encouraged to strengthen reconciliation systems, with reconciliation intervals generally not exceeding 60 minutes.
The circular also emphasises enhanced payment tracking and transparency. Banks have been directed to use the Unique End-to-End Transaction Reference (UETR) to trace inward remittances from receipt to final credit.
In addition, banks have been asked to strengthen digital foreign exchange platforms, paving the way for the eventual discontinuation of "Form C" and "Form C (ICT)".
Business insiders welcomed the move, saying faster remittance crediting would enhance customer confidence and bring Bangladesh's remittance processing in line with global best practices.
Some bankers, however, said operational challenges could arise during the transition period as banks adjust their systems and processes.
